An Introduction To Closing Costs

If you’re a potential first time homebuyer, you may be confused about those mysterious closing costs — the expense that means that when you think you’ve finally saved up enough for a down payment, you really haven’t. Closing costs can add 2% to 5% to the purchase price of your home, which is especially painful if you live somewhere with high housing costs.

So what are closing costs? Here’s a rundown. Keep in mind that this is just a sampling of fees you may need to pay. Depending on your location, lender, and other factors, you may encounter a lesser or greater list of fees.

Credit report: For around $50, the lender will check at least two of the major credit r

if you’re paying all cash for a property expect to pay attorney fees, you may have to give credit to the seller for water, gas, electric,sewer charges-if he’s paid these items upfront. try and find a sample hud statement on line and exclude the lender’s costs from the statement and that should help you see what you’ll be expected to pay at closing.